Summary of Jewett-Cameron Trading Company (JCTC) Conference Call Company Overview - Jewett-Cameron Trading Company (JCTC) is a small-cap company with significant growth potential, focusing on durable markets and functional products [3][4] - The company has a 70-year history and is listed on NASDAQ, primarily offering fencing, pet containment, and sustainable home products [4] Core Business and Product Offerings - JCTC is undergoing a strategic transformation, evolving from a lean operation to a growth-oriented platform with product leadership in outdoor living and home improvement [5] - Key product categories include: - **Fencing Products**: Includes fence boards, pickets, steel access accessories, and composite EuroFence products [8] - **Pet Containment**: Focuses on durable solutions like welded wire and chain link dog kennels [8] - **Sustainable Products**: Compostable and post-consumer recycled products, including bags for waste [8] - **Greenwood**: A subsidiary specializing in industrial wood products, particularly proprietary plywood for transit buses [8] Market Position and Growth Strategy - JCTC has established strong retail relationships with major retailers like Home Depot, Lowe's, and Costco, enhancing shelf presence and growth momentum [6] - The company is actively transitioning to growth mode by optimizing pricing, expanding distribution, and reducing overhead [8] - The introduction of innovative products, such as the lifetime steel post and adjustable gates, has driven significant sales growth [10][12] Financial Position - JCTC is trading at a steep discount to book value, has no long-term debt, and possesses a valuable 11.6-acre property that could enhance equity upon sale [7] - The company has reduced inventory levels to align with growth plans, improving cash flow and operational efficiency [16][17] Supply Chain and Tariff Mitigation - JCTC has diversified its supply chain to include sourcing from countries like Vietnam, Bangladesh, Malaysia, and Indonesia, reducing dependency on China [21][22] - The company has implemented a comprehensive multisourcing strategy to mitigate tariff impacts, particularly the 25% global steel tariff [21][22] - Ongoing landed cost comparisons and dual tooling strategies are in place to maintain competitive pricing and ensure supply continuity [25][26] Customer Response and Pricing Strategy - Customers have responded positively to recent price adjustments, which have been modest due to proactive sourcing strategies [27][28] - JCTC aims to maintain competitive pricing while ensuring product quality and reliability, reinforcing its position as a trusted supplier [28] Property Sale and Future Outlook - The company is selling an 11-acre property in Oregon, which has faced a slower sales timeline due to market uncertainties and zoning constraints [30][31] - The property is valued at $9 million, with significant potential upside upon sale [32] - JCTC envisions a dominant presence in the fencing market and plans to expand its product range and distribution channels over the next five to ten years [33][34] Final Takeaways - JCTC is executing a focused strategy with strong momentum in key product categories and strategic sourcing initiatives [36] - The management team is committed to creating value for shareholders, making it an opportune time for investors to consider the company [36]

Financial Data and Key Metrics Changes - The company reported a strong start to the year, focusing on advancing and derisking projects, with a successful commissioning of the qualification line at the Calythen graphite processing plant producing over 800 kilograms of CHPG sample [4] - The estimated total cost of Phase one remains at €245 million, with approximately 85% of the necessary equipment secured [5][11] - The company anticipates commercial production at Callenton to begin in 2026 [5] Business Line Data and Key Metrics Changes - The qualification line at the Calythen facility is capable of processing approximately one metric ton of CFPG battery anode material each day, which will inform operations of the main line expected to produce 12,500 metric tons per day upon Phase one completion [4] - The company envisions the Callentan facility reaching 50,000 metric tons per year of CHPG battery anode production upon completion of both Phase one and two [5] Market Data and Key Metrics Changes - Customer interest in domestically produced battery anode materials remains strong, with 100% of Phase one production capacity already committed under existing offtake agreements [7] - The company is in discussions with multiple customers interested in the Phase two output of 37,500 metric tons per year [8] Company Strategy and Development Direction - The company is well-positioned to meet the growing demand for sustainable and secure battery-grade anode materials in the U.S., aligning with U.S. policy goals to onshore sourcing and manufacturing of critical minerals [6][7] - The company is committed to vertical integration through the development of the Coosa deposit and is actively engaging with customers and fulfilling sample material requests [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in securing financing for Phase one of the Kellyton plant despite recent market uncertainties and supplier protests [12][13] - The company remains focused on executing its strategy, delivering value to shareholders, and navigating opportunities and challenges in the upcoming quarters [14] Other Important Information - The company announced the successful completion of the U.S. Patent and Trademark Office review of its patent application, marking another important milestone [6] - The company is evaluating several non-Chinese feedstock sources to diversify its supply chain and mitigate future risks [13] Q&A Session Summary Question: What components of entering production could go right or wrong? - Management highlighted the qualification line as a key milestone, providing invaluable experience for the operating team ahead of full operations [18] Question: What are the current trends in construction costs and equipment pricing? - Management noted that 85% of equipment is already purchased, and they remain within the $245 million construction budget despite tariff uncertainties [21][22] Question: Can you provide more details on the backup supply from non-Chinese suppliers? - Management stated they are close to securing a backup supply agreement but could not disclose further details due to NDA constraints [27] Question: What is the status of the loan and timing for financing? - Management indicated that the loan process has taken longer than expected but remains confident in closing financing soon, with a focus on the current syndicate [32][39] Question: What is the potential opportunity with the Export-Import Bank? - Management explained that the letter of interest from the Export-Import Bank is a preliminary step and could provide additional funding for advancing the business beyond Phase one [35][36]

Financial Data and Key Metrics Changes - The company reported a 10% year-over-year growth in Amazfit revenue, marking the first growth after two years of transformation [6] - Gross margin for Q1 2025 was 37.3%, higher than both Q4 2024 and Q1 2024, despite a negative impact from tariffs [28][29] - Operating expenses for Q1 totaled $31.5 million, an increase from $29.3 million in Q4 2024 and $27.8 million in Q1 2024 [30] Business Line Data and Key Metrics Changes - Amazfit branded products achieved a 10.2% year-over-year growth, reflecting strong market reception for new models Active2 and BIP6 [27] - The initial sales momentum of Active2 and BIP6 surpassed previous versions, securing top positions in major markets [12][15] Market Data and Key Metrics Changes - The U.S. market accounts for approximately 15% of the company's revenue, with tariffs currently having minimal impact on operations [9] - In Italy, the company's market share for no SIM smartwatch units reached 23.3%, ranking second in the core wearable smartwatch market [13] Company Strategy and Development Direction - The company is focusing on diversifying its supply chain and optimizing cost management to mitigate risks from geopolitical complexities [6][26] - Plans to strengthen presence in entry-level markets and deepen collaboration with offline channel partners are in place [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving year-over-year growth in overall sales for the first time since 2021, driven by product innovation and partnerships [22][56] - The company remains vigilant regarding macroeconomic challenges but expects operational efficiencies to offset tariff impacts [37] Other Important Information - The company successfully refinanced a significant portion of its short-term debt into long-term instruments, improving liquidity [35] - The anticipated tariff impact for 2025 is estimated to be around $2 million to $3 million, which is expected to be offset by operational efficiency gains [37] Q&A Session Summary Question: Impact of tariffs on U.S. exports produced in Vietnam - The company expects a full-year tariff impact of $2 million to $3 million, which will be offset by global operating efficiency gains [40][41] Question: Market pricing strategies - The company is monitoring competitors and will adjust pricing strategies on a case-by-case basis, but does not plan to be the first mover [47] Question: Operating expenses reduction timeline - A significant reduction in operating expenses is expected in Q2, as Q1 expenses were influenced by product launch events [48] Question: New product launches for the year - The company aims to refresh all major product lines throughout the year, with multiple new product launches planned [50][54]

Financial Data and Key Metrics Changes - The company reported a 10% year-over-year growth in Amazfit revenue, marking the first growth after two years of transformation [7] - Gross margin for Q1 2025 was 37.3%, higher than both Q4 2024 and Q1 2024, despite a negative impact from a 20% U.S. tariff on China-made products [28][29] - Adjusted operating loss for Q1 2025 was $17.2 million, compared to a loss of $13.1 million in the same period of 2024 [33] Business Line Data and Key Metrics Changes - Amazfit branded products achieved a 10.2% year-over-year growth, reflecting strong market reception of newly launched models Active2 and BIP6 [27] - Sales of Amazfit products increased by more than 10% compared to the same quarter last year, indicating a successful strategic shift [11] Market Data and Key Metrics Changes - The U.S. market accounts for about 15% of the company's revenue, with minimal impact from tariffs currently [10] - In Italy, the company's market share of non-SIM smartwatch units reached 23.3%, ranking second in the core wearable smartwatch market [14] Company Strategy and Development Direction - The company is focusing on diversifying its supply chain and optimizing cost management to mitigate risks associated with geopolitical complexities [8] - Plans to strengthen presence in entry-level markets and deepen collaboration with offline channel partners are in place [22] - The company aims to launch a significant number of new products in 2025 and 2026 to restore growth and profitability [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving year-over-year growth in overall sales for the first time since 2021, driven by product innovation and partnerships [22] - The anticipated tariff impact for 2025 is estimated to be around $2 million to $3 million, which is expected to be offset by global operating efficiency gains [37] Other Important Information - The company successfully refinanced a significant portion of its short-term debt into long-term instruments, improving liquidity and balance sheet flexibility [35] - Cash balance as of March 31 was $104 million, a decrease from $110 million in Q4 2024, but managed through improved working capital [33] Q&A Session Summary Question: Impact of tariffs on U.S. exports produced in Vietnam - Management expects a full-year tariff impact of $2 million to $3 million, which will be offset by global operating efficiency gains [40][41] Question: Market pricing strategies - The company is not planning to be the first mover in raising prices and will monitor competitors before making adjustments [46][47] Question: Operating expenses reduction timeline - A significant reduction in operating expenses is expected in Q2, with Q1 being an outlier due to product launch events [48][49] Question: New product releases for the year - The company aims to refresh all major product lines throughout the year, with multiple new product launches planned [50][51]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $16.6 million, down from $23.3 million in the prior year, primarily due to lower product sales to the largest channel partner, partially offset by growth in SuperSuite offerings [12] - Gross profit decreased to $7.2 million from $10.3 million year-over-year, with gross margin at 43.3% compared to approximately 47% in the previous year [13] - Net loss attributable to iPower was $340,000 or a loss of $0.01 per share, compared to net income of $1 million or a profit of $0.03 per share in the same period last year [15] - Cash and cash equivalents were $2.2 million as of March 31, 2025, down from $7.4 million at June 30, 2024, while total debt was reduced by 43% to $3.6 million [15][16] Business Line Data and Key Metrics Changes - SuperSuite now accounts for approximately 20% of total revenue, indicating significant adoption of integrated supply chain offerings [6] - The company is enhancing SuperSuite capabilities by adding functions from value-added partners across logistics, merchandising, and data analytics [6][7] Market Data and Key Metrics Changes - The majority of supplies are still sourced from China, although there is a growing presence of US-based suppliers [18] - The company is actively diversifying its supply chain to reduce dependency on international logistics and respond to geopolitical dynamics [9][10] Company Strategy and Development Direction - The company is focusing on building a more agile and durable supply chain by expanding manufacturing into the US and onboarding more US-based suppliers [5] - The "Made in USA" initiative aims to support domestic manufacturing by providing resources for legal compliance, facility sourcing, and local management [7][8] - The company is committed to enhancing operational efficiency and building a resilient supply chain as a strategic priority [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a cautious demand environment but believes that diversification efforts and the momentum in SuperSuite will help navigate current market conditions [11] - The company is taking a disciplined approach to capital allocation while strengthening its operational foundation [10][11] Other Important Information - The company has reduced operating expenses by 15% to $7.4 million, driven by lower general and administrative costs [14] - The ongoing efforts to diversify the supply chain and optimize operations are expected to deliver long-term value to customers and shareholders [16] Q&A Session Summary Question: What is the exposure to different geographies based on sales in Q3? - Management indicated that while Southeast Asia is growing, the majority of supplies still come from China, with US-based suppliers now onboarded [18] Question: How does the current inventory situation affect the largest channel partner's reordering? - Management emphasized the importance of maintaining adequate inventory levels in the US to balance overall demand and avoid overstocking [20] Question: What expertise does the company have in supporting the "Made in USA" initiative? - Management highlighted their established sales channels, product capabilities, and understanding of local policies as critical to successfully launching manufacturing in the US [24]

In a big de-escalation of recent trade tensions, the US and China have recently agreed to a 90-day truce that significantly lowers tariffs on hundreds of billions of dollars in goods.More specifically, the deal reduces US tariffs on Chinese imports from 145% to 30% and cuts Chinese tariffs on US goods from 125% to 10%. Importantly, the agreement provides a nice level of temporary relief while also opening the door for further negotiations.Several companies with notable China exposure, Apple (AAPL) and Nike ...

Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, in line with expectations, driven by strong growth in coolers and equipment and continued momentum in international business [35][36] - Gross profit rose by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [42] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [45][60] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [36] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [37][38] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [39] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [41] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [29][30] Company Strategy and Development Direction - The company is focused on three key areas: accelerating product innovation, transforming the supply chain, and maintaining operational discipline [5][8] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [9][67] - Supply chain transformation aims to reduce reliance on China, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [7][8] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [51] - Long-term growth potential remains strong, with a focus on international expansion and product innovation [55][93] Other Important Information - The company ended the first quarter with $259 million in cash and a substantial net cash position [46] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [60] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [67][68] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is attributed to China, with expectations of a much stronger position by the end of the year as supply chain diversification progresses [73][75] Question: Outlook for the Drinkware business - The company anticipates durable demand in the Drinkware category, with ongoing innovation and a diversified product portfolio to address various consumer needs [79][80] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains, aiming for a stable pricing environment that supports long-term growth [89][90] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the launch in Japan to expand further into Asia [91][93]

Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, driven by strong growth in coolers and equipment and continued momentum in international business [38][39] - Gross profit increased by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [45] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [47][62] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [39] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [40][41] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [42] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [44] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [31][32] - The U.S. market is expected to be flat to down low single digits year-over-year, while international business is projected to grow between 15% to 20% [56] Company Strategy and Development Direction - The company is focused on three key areas: product innovation, supply chain transformation, and operational discipline [5][11] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [8][69] - A significant shift in Drinkware production out of China is underway, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [6][50] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [53] - Long-term growth potential remains strong, with a focus on brand resilience and product innovation [35][65] Other Important Information - The company ended Q1 with $259 million in cash and a substantial net cash position, reflecting strong liquidity [48] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [62] - The company is closely monitoring tariff policies and implementing mitigation strategies to manage costs [64] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [69] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is related to China, with expectations of a significant reduction in exposure to Chinese goods by 2026 [76] Question: Outlook for the Drinkware business - The company anticipates a durable demand in the Drinkware category, with ongoing diversification efforts to address various consumer needs [81] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains to mitigate tariff impacts, ensuring long-term stability [92] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the Japan launch to expand into the rest of Asia [95]

Financial Data and Key Metrics Changes - Overall net sales for Q1 2025 were $68 million, down 5% from $71.6 million in Q1 2024 [4] - Consolidated gross earnings were 44.6% of net sales for the quarter, compared to 44.7% in the previous year [4] - Operating earnings totaled $7 million, down 15% from $8.3 million in Q1 2024 [5] - Net earnings were $5.5 million or $0.57 per diluted share, compared to $6.7 million or $0.69 per diluted share in the same quarter last year [5] Business Line Data and Key Metrics Changes - In the North American wholesale segment, net sales were $54.3 million, down 4% from $56.2 million last year [5] - North American retail segment net sales were $8.7 million, down 12% from record sales of $9.8 million in 2024 [6] - Florsheim Australia's net sales were $5.1 million, down 7% from $5.5 million in Q1 2024 [8] Market Data and Key Metrics Changes - Florsheim Australia's net sales declined 7% for the quarter or 3% in local currency, with a 6% increase in local currency sales in Australia [9] - Overall inventory as of March 31, 2025, was $68.2 million, compared to $74 million at the end of 2024 [18] Company Strategy and Development Direction - The company is focusing on mitigating the impact of increased tariffs by negotiating cost reductions with suppliers and planning to raise selling prices [11] - There is an emphasis on diversifying sourcing to reduce reliance on China, with plans to source from countries like Cambodia, Vietnam, and India [25] - The company remains optimistic about its innovative product lines and is investing in data-driven tools for long-term growth in e-commerce [16] Management's Comments on Operating Environment and Future Outlook - Management noted significant geopolitical and macroeconomic uncertainties affecting consumer and retailer confidence, leading to declines in wholesale and direct-to-consumer businesses [13] - Despite challenges, management expressed confidence in operational execution and the ability to manage supply chain disruptions [20] Other Important Information - Cash and marketable securities totaled $77.9 million with no debt outstanding on the revolving line of credit [11] - A cash dividend of $0.27 per share was declared, representing a 4% increase from the previous rate [12] Q&A Session Summary Question: How long can the pause on imports from China be maintained before impacting inventories? - Management indicated they are covered through part of Q3 but will face inventory issues thereafter, while continuing to manufacture in China and shipping to a distribution center in Montreal [23][24] Question: What is the current duty going into Canada? - The duty into Canada is 19%, which is less complicated than the U.S. duty structure [29]

Financial Data and Key Metrics Changes - Acushnet reported worldwide net sales of $703 million, a 1% increase year-over-year [6] - Adjusted EBITDA was $139 million, reflecting a decrease of $15 million due to increased investment in the equipment segment [6][18] - Gross profit decreased by $5 million compared to the first quarter of 2024, primarily due to higher manufacturing costs [19] Business Line Data and Key Metrics Changes - Golf equipment net sales increased by almost 4%, driven by new product launches and strong performance in the EMEA region [7][11] - Titleist golf ball business grew by 4%, with significant gains in the EMEA region [8] - FootJoy sales declined by 5%, attributed to lower closeout footwear sales and targeted product line rationalization [10][19] Market Data and Key Metrics Changes - The US market saw a 1% increase, while EMEA grew by 4% [11] - Japan and Korea experienced declines of 24% each, primarily due to poor weather affecting the golf season [11] - Rounds of play in the US were down 2%, but worldwide rounds were slightly up, led by a 15% increase in EMEA and the UK [12] Company Strategy and Development Direction - The company is focused on executing a full slate of product fitting events across all markets [11] - Acushnet is adapting its supply chain to mitigate tariff impacts, with plans to source more components from non-China territories [14][26] - The company aims to maintain a strong consumer base and provide exceptional product experiences while navigating tariff uncertainties [17][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core consumer, the dedicated golfer, despite macroeconomic uncertainties [17][25] - The company expects a gross tariff impact of approximately $75 million in 2025, with plans to mitigate over 50% of this impact [25][26] - Future guidance remains uncertain due to changing trade policies, with no updates provided until more clarity is achieved [25] Other Important Information - Capital expenditures for the first quarter were $11 million, with a planned total of approximately $85 million for 2025 [22] - The company returned roughly $51 million to shareholders through share repurchases and cash dividends [23] - The effective tax rate in Q1 was 17.9%, down from 21.7% the previous year [21] Q&A Session Summary Question: Guidance and Consumer Demand - Management indicated that the decision to pause guidance updates is due to less visibility rather than a change in consumer demand [30][31] Question: Tariff Mitigation Actions - Management outlined that pricing would be a last resort, focusing first on supply chain adjustments and cost-sharing with suppliers [34][36] Question: Impact of Tariff Changes - If the China tariff rate were to decrease, the potential mitigation of the $75 million impact could be significant [41][42] Question: Demand Trends in Asia - Management noted a slow start in Asia due to weather but observed improvement in March and April [43][44] Question: Currency Exchange Rate Impact - A potential tailwind of $20 million was discussed if current exchange rates persist, impacting overall financial outlook positively [49][50] Question: Diversification from China - Management confirmed plans to diversify sourcing away from China while maintaining some supply chains for non-US markets [56][58]